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Beverly to Be Acquired by Fillmore

November 22, 2005|From Reuters

Nursing home operator Beverly Enterprises Inc. said Monday that it would be acquired by Fillmore Strategic Investors for $1.59 billion after its previous suitor failed to get financing for a $1.65-billion takeover bid.

The agreement with Fillmore marked the latest twist in a 10-month takeover saga that began in January, when a Beverly investor led a $1.5-billion unsolicited bid for the company.

Beverly in March put itself up for sale and began accepting formal offers. In August, it had agreed to be acquired by North American Senior Care for $13 a share, or $1.65 billion, plus the assumption of debt.

North American, however, failed to submit the required financing commitments by Friday's deadline. As a result, the nursing care company said it weighed whether to accept the lower bid from Fillmore or terminate the auction and look for other ways to boost shareholder value in the coming months.

Under the new pact, Fillmore, an affiliate of a private equity firm specializing in lodging and healthcare investments, will pay $12.50 a share, or $1.59 billion.

Despite the lower price, shares of Beverly rose 14 cents to $11.87.

The deal allows Beverly to seek a better offer until Dec. 12.

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